NBS gross FX reserves at 25.1 bln euros at end-April

BELGRADE - National Bank of Serbia (NBS) gross FX reserves reached 25.1292 bln euros at end-April, their highest end-of-month level since monitoring began in 2000.

In a statement, the central bank said FX reserves had climbed by 187.1 mln compared to the previous month.

"They covered 169.8 pct of M1 money supply and 6.7 months’ worth of the country’s imports of goods and services, which is more than twice the level prescribed by the adequacy standard.

Net FX reserves (gross FX reserves less banks’ FX balances on account of required reserves, liabilities to the IMF under the arrangement, and other grounds) came at 20,921.7 mln euros, up by 242.6 mln euros from end-March.

The greatest inflows to FX reserves in April came from NBS interventions in the IFEM (305.0 mln euros). This amount reflects an inflow worth 195 mln euros from FX purchases carried out on the last two working days in March which were settled in early April, and a part of the net FX purchases in April worth 110 mln euros. The purchase carried out on the last two working days of April (100 mln euros) will give a boost to FX reserves in May," the NBS said.

"Inflows also stemmed from FX reserve management, grants and other sources (104.5 mln euros in total). These inflows were more than sufficient to cover the outflows on account of net government debt repayment in respect of FX loans and securities and other FX liabilities (307.5 mln euros), and other grounds (59.3 mln euros).

FX reserves were propped up also by the positive net effect of market factors worth 144.4 mln euros, mainly reflecting the rise in the price of gold by around 4.2 pct and the dollar’s appreciation against the euro by around 0.7 pct in the international market," the statement said.